Should You Use AI To Price Your Home?

By Rachel Mooney

Rachel has built a reputation for making the complex process of buying and selling homes not only enjoyable but also financially rewarding. Her deep understanding of the local market, combined with her genuine passion for helping families transition through different stages of life, has allowed her to serve hundreds of clients with exceptional care and professionalism.

Using AI to price your home might seem like a quick and easy solution, but there are several key factors to consider. Before relying on tools like Zillow or Realtor.com, you have to remember that these platforms use automated algorithms to estimate home values. This means they don’t always capture the whole picture. If you’re planning to sell, you should know when AI works and when it falls short. Here are things you need to know about using AI in real estate:

AI works best in uniform neighborhoods. AI can be helpful in neighborhoods where homes are nearly identical. In areas with similar layouts, sizes, and features, the data that AI pulls from tax records and MLS listings can provide a reasonable starting point. But that’s all it is—a starting point.

AI cannot walk through your home, see the upgrades you’ve made, or evaluate how your lot compares to others nearby. It also doesn’t track local buyer demand or understand what homes are currently attracting attention.

Real example: AI left $45,000 on the table. I recently met with a seller who priced their home at $620,000 based on AI tool recommendations. After touring the house and reviewing the details, I noticed they had made $70,000 in upgrades, were located on a quiet cul-de-sac, and backed up to the Greenway. We adjusted the price to $665,000 and received multiple offers. The AI tools missed those value-adding details, which could have cost the seller a significant amount.

AI can mislead buyers, too. These tools also impact buyers. If a buyer sees that a Zestimate shows a home is worth less than the asking price, they may assume the seller is overpricing the property. That often leads to low offers, even when the house is reasonably priced. Many buyers take online estimates at face value without realizing that the numbers may be based on outdated or incomplete information.

Your agent sees what AI can’t. This is why working with a local real estate agent matters. I’m in the market every day, tracking which homes are selling, which ones are sitting, and what buyers are doing. I know when builders are holding back inventory from the MLS, which means AI tools do not have the whole picture. That can throw off the numbers and create unrealistic expectations on both sides of a transaction.

If you are getting ready to sell, feel free to look at online estimates to get a general sense of the market. Just make sure to follow that up with a professional opinion. If you are in North metro Atlanta and you have questions, feel free to call or text me at 678-804-4733 or email me at rachel@rachelmooney.com. I would be happy to take a look at your property and talk through pricing, buyer activity, and how to position your home for the best results.